Question
11. You are evaluating a proposed project for your company. The project is expected to generate the following end-of-year cash flows: You have been told
11. You are evaluating a proposed project for your company. The project is expected to generate the following end-of-year cash flows:
You have been told you should evaluate this project with an interest rate of 8.00%.
A) What is the NPV?
B) what is the Internal Rate of Return (IRR)
C) Based on the information above: Your group leader has now told you that the risk of the project was understated before. As a result, she tells you to recalculate the projects NPV with a 12.5% interest rate. What is the projects new NPV?
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The Evolution Of Nordic Finance
Authors: Steffen Elkiær Andersen
2011th Edition
0230241557, 978-0230241558
